Suppose that on its historical Income Statements, a firm always split its total depreciation and amortization between the Cost of Goods Sold and SG&A. Thus, when we forecast those accounts (namely, CGS and SG&A) we implicitly, and correctly, forecast the firm's depreciation and amortization. Nonetheless, why must we always separately forecast depreciation and amortization as part of our forecasting model? Be brief!
Suppose that on its historical Income Statements, a firm always split its total depreciation and amortization between the Cost of Goods Sold and SG&A. Thus, when we forecast those accounts (namely, CGS and SG&A) we implicitly, and correctly, forecast the firm's depreciation and amortization. Nonetheless, why must we always separately forecast depreciation and amortization as part of our forecasting model? Be brief!
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 12MC: Which of the following does nor assign a value to a business opportunity using time-value...
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